Title: Nomad Capitalist

Author: Andrew Henderson

Hi there,

Like most of you I bet traveling in the past few months either wasn’t an option or it was restricted in some way or another. Hopefully in the upcoming months things will turn for the better and we can experience once more what we were used to, freedom to do anything and go anywhere.

This brings me to the topic of this next book. Becoming a nomad.

As creatures of habit we try and see patterns in everything, so that we may experience a sense of comfort. However, when we take on a new project or visit a new country, we are taking a step into the unknown, and feel a little anxious. Eventually we return home and get a sense of comfort sweep back over us. However as a nomad, home is not fixed to one location for majority of ones life. They prefer to travel and work everywhere.

As someone that prefers a stable home, this gives me a little bit of the creeps as you wonder how they can make a living with such a lifestyle, and whether this is something clever to undertake in order to build sustainable income and wealth for one’s retirement.

That is where the author dares you not to become fixated, but consider the possibilities out there. Majority of us are brought up, and are working towards building up our wealth in one country (the place we know) and not really dream of living somewhere else once we’ve started settling in. That is exactly where the author clarifies that this kind of lifestyle isn’t for anyone, but we shouldn’t say that this lifestyle isn’t possible just because many aren’t doing it. On the contrary, he shows that if one chooses to live this kind of life, it is more accessible today than it was before.

His motto: Go where you are treated best.

He sees that things aren’t always as great in your home country, but because you grew up there and don’t know anything of the outside world (and even less know what will happen in your future if you start fresh), we put up with it and live a miserable life. He doesn’t see this as an option and therefore took active steps to find other countries that are treating their people (and entrepreneurs) nicely, so they would want to stay, and in turn help build up their economies.

In economics we learn of the four factors of production: 1) Land/ Natural Resources, 2) Capital, 3) Labour and 4) Entrepreneurship. When an economy wishes to grow it requires capital, and also proper leadership (entrepreneurs) that will help grow the economy in a mutually beneficial manner. A country’s government that wishes to rule a capitalist economy will try and do everything to make itself attractive to investors, and therefore will implement fiscal policies that they find attractive to move there.

This is what the author is trying to get at. Go where you don’t feel you’re being exploited (through taxation) by your own country, but go where the country will do everything to keep you there because you are good for them.

He breaks down his motivation for this lifestyle into three broad categories:

E – Enhance your Personal Freedom

• a location-independent lifestyle
• second passports
• birth, love and children
• nomad healthcare

This section is dedicated to taking back control over our lives and showing the corrupt governments who aren’t spending taxes for appropriate projects that we can take our business elsewhere. Somewhere where the country wants people to help grow their economies, and they don’t take them for granted.

Being a citizen of one country sets a limit one where you may travel to without requiring a VISA. Through this mechanism, requiring a passport to enter another country, some of your freedom to do what you wish has been taken away. It also restricts foreigners from coming into your country and receive public benefits at your cost. So all in all, passports have their good and bad sides. However, when the governments are corrupt, and use tax monies to enrich themselves, it is just unmoral and you should consider getting back some of your freedom from one country.

The next two categories deal with diversification, not just in different classes of assets, but also in different countries, so all your assets aren’t concentrated and at risk within one country.

K – Keep more of your Money

• offshore banking
• offshore companies and tax savings
• foreign asset storage

The objective of the nomad capitalist is to go to the country that treats you best, and for a business man this would also include a country where you aren’t taxed excessively, but are taxed at a lower rate so you can utilize more of your profits to reinvest into your business, and grow it even bigger.

What are tax monies used for? To fund public services and projects, such as infrastructure maintenance, public education, public medical aid, pensions, etc. However, when more and more projects and responsibility is taken over by the government it needs more funds in order to finance such projects. Through higher taxation less money is available to your business to expand as much as you would like it to.

Do not get me wrong, a tax system is good to collect funds to finance projects that are provided to the public. However, whenever we perceive that we do not derive any benefit from the tax, or where the taxes are stolen for personal gain, this is where we should draw the line. And that is where the nomad capitalist has taken back control to state that if they don’t feel they are being treated best, or their money isn’t used properly by the government, then they can take their business elsewhere.

G – Grow your Money

• overseas investments
• frontier market entrepreneurship
• conquering dogma

Opening yourself up to investing in other countries that can grow at higher rates is another reason to get the best of both worlds. Developed countries notoriously slow in their growth potential to the single digits, whereas developing- and frontier countries have potential to grow at two digits since more has to happen to get their country on the same standard as developed countries.

Taking Action

The final section of the chapter also sets an important message that many overlook. The simple fact of taking part in a seminar, or reading a book alone doesn’t get you to your dreams.

We need to decide what we want to achieve and then take active steps to get us closer to that dream. The dream is achieved by taking all those individual steps that are considered necessary for the attainment of the goal.

Summary:

The book is quite an enjoyment to read as it answers some of the answers you may have on how such a lifestyle is possible and why investing and banking abroad is not only something for the big corporations, but that it is more accessible for others as well. Further, it wishes to show the reader that there are options out there for anyone wishing not to be fixed in one location. I’ve decided to give the book a rating of 4,7/5

Happy reading!